Engineering firms should disclose overseas work when it represents a new or significant activity that may materially change their Professional Indemnity exposure.
The insurer may need to consider:
- the countries involved
- project values
- engineering disciplines
- governing law and jurisdiction
- client types
- contractual requirements
- overseas revenue
- whether USA or Canadian exposure is involved
Different insurers have different appetites for international work. Some may accept the exposure within existing terms, while others may require additional information, amended conditions, a separate endorsement or additional premium.
The key issue is making sure the insurer understands the overseas exposure before it becomes material.
Engineers should not assume that because a policy has broad territorial wording, every overseas engagement is automatically acceptable.
For significant new international work, disclose it before the contract is signed or the work begins so the insurer’s position can be confirmed.
